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The Thameslink-Bombardier-Siemens furore is one of the unhappier manufacturing stories of recent times – and some MPs want to ensure that the government isn’t allowed to forget it.
To recap, German giant Siemens was awarded preferred bidder status for the contract to supply and maintain electric rolling stock for the Thameslink Bedford-to-Brighton route. Derby’s Bombardier, Britain’s last remaining train manufacturer, therefore lost out on the deal.
To those backing Bombardier’s bid, which included a vociferous group of MPs, unions and local campaigners, the decision brutally exposed the lack of substance in coalition rhetoric about rebalancing the economy in favour of manufacturing.
Now some in Westminster are attempting to push the row back up the agenda in parliament. One of these is Chris Williamson, Labour MP for Derby North, who has become increasingly concerned and frustrated about what he calls “evasiveness” on the part of the transport minister, Theresa Villiers, and the government, regarding the closing of the deal with Siemens.
According to Williamson, the government has repeatedly pushed back the deadline for the Thameslink contract to finally be signed. While this has been going on, there has also been some speculation that Siemens might not be able to commit to the contract, leaving Bombardier, as the reserve bidder, in a position to take it on.
Williamson has tabled questions in the House of Commons asking the government to clarify the timetable for signing the deal and to confirm whether Siemens indeed might pull out. He says he has received little elucidation.
He told PE: “Already we know 1,400 people have lost their jobs at Bombardier, and you also have to take into account people in the supply chain. Some will have found alternative employment, a lot won’t – others may have found alternative employment that is less well-paid. Manchester Business School worked out that the loss in revenue to the exchequer is in the order of £100 million from lost tax and national insurance, and reduced demand in the local economy.”
Some believe the Siemens bid may have been cheaper than Bombardier’s to the tune of £100 million. Williamson said: “You factor in loss in tax revenues and national insurance, and payment of unemployment benefit – which will inevitably occur as a result of people
losing their jobs – and the figures come out fairly evenly. If anything it’s potentially less costly to the UK to award the contract to Bombardier, which could generate a virtuous economic circle.”
It is unclear at this point what problems Siemens is having that might make it difficult to seal the Thameslink deal. But the citizens of Derby will hope that there is a genuine prospect of the government reverting to the second bidder – Bombardier.
Williamson said resignedly: “It’s a curious and frustrating state of affairs. Unfortunately we have a situation where countries in Europe are far more prepared to support their own manufacturing industries than we are.
“But we’ll keep hoping until the ink dries on the contract.”